The North American Securities Administrators Association has developed a co-ordinated review program for small investment advisors, which are required to switch from federal to state regulatory oversight, NASAA said Tuesday.
The U.S. regulatory reform known as the Dodd-Frank Act requires investment advisors with assets under management of between US$25 million and US$100 million to switch from federal to state registration by mid-2012, unless they are registered in at least 15 states, in which case they can remain under federal jurisdiction.
The states where the investment advisor has filed a registration application will conduct a co-ordinated review of the advisor’s registration materials. After completion of the review, the advisor will be informed of the deficiencies, if any, that must be resolved before the registration will be approved.
“This initiative provides investment advisors registering in multiple states with an easier way to navigate the switch to state registration and gives states an opportunity to co-ordinate and resolve issues about potential problems with applicants,” said Jack Herstein, NASAA president and assistant director of the Nebraska Department of Banking and Finance Bureau of Securities.
There is no additional cost to use the program. “Advisors will be subject only to the filing fees specified by the states in which the investment advisor is applying for registration,” he said.